Correlation Between Madison Square and Imax Corp
Can any of the company-specific risk be diversified away by investing in both Madison Square and Imax Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Madison Square and Imax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Madison Square Garden and Imax Corp, you can compare the effects of market volatilities on Madison Square and Imax Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Madison Square with a short position of Imax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Madison Square and Imax Corp.
Diversification Opportunities for Madison Square and Imax Corp
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Madison and Imax is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Madison Square Garden and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp and Madison Square is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Madison Square Garden are associated (or correlated) with Imax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imax Corp has no effect on the direction of Madison Square i.e., Madison Square and Imax Corp go up and down completely randomly.
Pair Corralation between Madison Square and Imax Corp
Given the investment horizon of 90 days Madison Square is expected to generate 26.74 times less return on investment than Imax Corp. In addition to that, Madison Square is 1.45 times more volatile than Imax Corp. It trades about 0.0 of its total potential returns per unit of risk. Imax Corp is currently generating about 0.05 per unit of volatility. If you would invest 1,615 in Imax Corp on August 27, 2024 and sell it today you would earn a total of 904.00 from holding Imax Corp or generate 55.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Madison Square Garden vs. Imax Corp
Performance |
| Timeline |
| Madison Square Garden |
| Imax Corp |
Madison Square and Imax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Madison Square and Imax Corp
The main advantage of trading using opposite Madison Square and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Madison Square position performs unexpectedly, Imax Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Imax Corp will offset losses from the drop in Imax Corp's long position.| Madison Square vs. Madison Square Garden | Madison Square vs. Graham Holdings Co | Madison Square vs. Atlanta Braves Holdings, | Madison Square vs. Live Nation Entertainment |
| Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | Imax Corp vs. News Corp A |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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